Should Britain be run by Tesco?

The company's record ain't great

Congratulations to Alex Brummer, who won two prizes at this week's inaugural Editorial Intelligence Comment Awards. He picked up a gong for financial column of the year and also bagged a second prize for best magazine commentator, for his work in the New Statesman.

But I have to disagree with the great man about his column in today's Daily Mail, headlined: "What if Tesco ran the country?"

Let's be honest. We all love Tesco. OK, let me rephrase that. Even those of us who care about low pay, workers' rights and corporate social responsibility and who normally take a rather dim view of big business often end up making the confession that I am about to make: I spend about two or three nights a week shopping at my local Tesco superstore. I can't help it -- Tesco makes life so convenient.

But I have to draw the line at running Britain along the lines of Sir Terry Leahy's multibillion-pound corporate behemoth. Here's something to give you a flavour of Alex's column:

How different Britain might have been had Gordon Brown got his way and managed to persuade Sir Terry Leahy, the quiet man who leads Tesco, to run the National Health Service.

But if Leahy, who is married to a GP, had agreed to take on this mammoth task, he would never have made the botch of a job that New Labour has achieved . . .

In so many other areas, a country run according to Tesco principles would have meant a dramatic improvement in the population's living standards . . .

There are so many other areas where Britain could have benefited from the Tesco touch . . .

Allowing mistakes to drag would be anathema in Tescoland.

Hold on! As I said, I'm as big a fan of Tesco as the next man when it comes to a convenient and cheap weekly shop . . . but running the country? It would be AWFUL. Alex makes no reference to the various critiques of Tesco made in recent years by the green, sustainable and trade union movements.

He makes no mention, for example, of the Competition Commission's recommendation, early this month, that the government "take the necessary steps to introduce a competition test in planning decisions on larger grocery stores". The CC's proposal, writes Alex Renton, "acknowledges that 'Tesco towns' like Swansea, Truro and Inverness -- where £3 in every £4 is spent with the retailer -- are a bad thing". (By the way, Renton also writes that "if you do shop at Tesco, by the way, bear in mind that the store has a 30 per cent share of British grocery retail and has been doing gloriously out of you through the recession, with sales up yet again in the first six months of the year, and pre-tax profits now just under £1.5bn for the period".)

In his Mail column, extolling the virtues of a hypothetical Tesco-led Britain, Brummer also fails to mention any the numerous local campaigns against the firm's expansion plans across the country. Nor does he mention a story reported in his own paper, in August, about how Tesco used "bogus" statistics to try to convince the residents of Manningtree to back "its efforts to expand its supermarket empire":

Britain's biggest retailer sent leaflets to residents in an Essex town claiming its own research demonstrated there was a "need and demand" for a new supermarket.

However, the telephone poll used as the basis of the claim showed that just 38 out of the 440 people surveyed wanted a new supermarket -- 8.6 per cent.

While even fewer people, just 20, said they would like to see a new Tesco.

Today the Advertising Standards Authority (ASA) condemns the leaflet as misleading and has ordered the supermarket not to send it out again.

But perhaps most importantly, if Brummer is right, and Leahy would do a better job of running the country than Gordon Brown or Alistair Darling, how does he explain this letter from Barack Obama, of June 2008? The then presidential candidate and junior senator from Illinois took time out from his campaign to write to Sir Terry, complaining about the firm's lack of engagement with "community stakeholders" in the United States and lending his support to a campaign by the United Food and Commercial Workers' Union, which Tesco's American operation, Fresh & Easy, had refused to meet with, let alone recognise. "I strongly request that you revisit that decision," wrote Obama, warning that workplace rights would have a prominent place on his presidential policy platform. "I again urge you to reconsider your policy of non-engagement in the United States."

If you think Brown had problems with Obama, how do you imagine a Tesco-led Foreign Office would handle the "special relationship"?

 

 

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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No, Matteo Renzi's referendum isn't Italy's Brexit

Today's Morning Call. 

The European Union saw off one near-death experience yesterday, as Alexander van der Bellen - a Green running under independent colours - saw off Norbert Hofer, the far-right candidate, taking 53 per cent to 47 per cent. 

"Turn of the tide: Europeans hail Austrian far-right defeat" is the Guardian's splash, while "Austria says NEIN to far-right" is the Metro's take.

It's a reminder that the relentless march of the far right is not as irresistible as the Le Pens of the world would like to think, and, for the left, a rare brightspot in a year of seemingly unbroken retreat, albeit by a margin that is too close for comfort. 

But on the other side of the Alps, things are not looking so great. Italian voters have rejected Italian PM Matteo Renzi's proposed constitutional reforms in a landslide, resulting in Renzi's resignation. (For a good primer on who Renzi is or rather was, Joji Sakurai wrote a very good one for us a while back, which you can read here)

"Europe in turmoil as Italian PM is defeated" is the Times splash. It has many worrying that Italy made be headed out of the Euro at worst and trigger another financial crisis in the Eurozone at best. Over at the Spectator, James Forsyth suggests that this will make the EU27 reluctant to put the squeeze on the City of London, which is still the Eurozone's clearing centre. Others, meanwhile, are saying it's all the latest in the populist, anti-establishment wave that is politics in 2016.

Are they right?

The reforms - which, among other things, would have ended the Italian system of "perfect bicameralism" whereby the upper house has as much power as the lower, replacing the former with a legislature drawn from the regions in a similar manner to Germany's - were something of a dog's dinner, and although the referendum was forced on Renzi as they were unable to secure a two-thirds majority among legislators, it was a grave error to turn the vote into a referendum on his government. (Bear in mind that Italy is a multi-party democracy where the left's best ever performance netted it 49.8 per cent of the vote, so he was on a hiding to nothing with that approach.)

If there is a commonality in the votes for Brexit, Trump, Hofer, it's in the revenge of the countryside and the small towns against the cities, with the proviso that in Austria, that vote was large enough to hold back the tide). This was very different. Particularly striking: young graduates, so often the losers at the ballot box and pretty much everywhere else post-financial crash, voted against the reforms yesterday.

Nor can a vote that was supported by Silvio Berlusconi, two of the three major parties, as well as Mario Monti, the technocrat appointed effectively on the demands of Italy's creditors, and the Economist be accurately described as a revolt against "the establishment" if that term is to have any meaningful use whatsoever.  

Of course, it could yet lead to a Brexit-style shock. Renzi's Democratic Party could collapse into in-fighting if his departure is permanent - though who knows, he might parlay his graceful concession speech and the likely chaos that is to follow into a triumphant second act - and although his party has a narrow lead in most polls, the Five Star Movement could win a snap election if one occurs.

That raises the nightmare prospect for Brussels of a Eurosceptic in power in a founder-member of the European Union and the single European currency. (That said, it should be noted that Five Star are opponents of the Euro, not of the European Union. The word "Eurosceptic" is perhaps making some anti-Europeans here in the UK overexcited.)

But as Open Europe noted in their very good primer on the referendum before the result that is still very much worth reading, that not only requires Five Star to win an election, but to hold and win not just a referendum on Italy's Euro membership, but to first win a referendum on changing the constitution to allow such a referendum in the first place. (And remember that support for the EU is up in the EU27 following the Brexit vote, too.)

The biggest risk is financial, not political. Renzi had acquired a quasi-mythical status in the eyes of foreign investors, meaning that his departure will make global finance nervous and could result in the rescue deal for Monte Paschi, the world's oldest bank, being mothballed. Although a economic crisis on the scale of the one Italy experienced in 2011 is unlikely, it's not impossible either. And what follows that may justify the comparisons to Trump rather more than Renzi's defeat yesterday.

THE FUTURE'S ORANGE, BUT NOT BRIGHT

Donald Trump, President-Elect of the world's largest superpower, has taken to Twitter to lambast the Chinese government, the world's second-largest superpower, and also a nation which holds both large numbers of nuclear weapons and vast amounts of American debt. 

The cause of the row? Trump became the first President or President-Elect to talk directly to Taiwan's president since 1979, which the Chinese government has taken umbrage to. (China regards Taiwan as a renegade province, not a separate nation.) 

I'LL SEE EU IN COURT

The government's appeal against the High Court's judgement that Parliament, not the Prime Minister, has the ultimate authority to trigger Article 50 begins today. The argument hinges on whether or not triggering Article 50 represents a loss of rights - if, as the High Court accepted it did, then only the legislature can vote to remove rights, rather than have it done through the royal prerogative. Gina Miller, the lead claimant in the case, tells the Guardianthat Supreme Court judges are being unfairly vilified in the right-wing press, who she blames for the death threats against her. 

TANGLED UP IN BLUE

The government is split over whether to continue paying into the European Union after Brexit to secure a decent standard of access to the single market, Oliver Wright reports in the Times. Boris Johnson used his tour of the Sunday shows to signal his opposition to the idea, which has been publicly backed by Philip Hammond, the Chancellor, and David Davis, the Brexit Secretary. Liam Fox is said to oppose any continued payments into the EU. 

PRETTY HUGE DECEPTION

Ukip's new leader, Paul Nuttall, has denied that he claimed to have a PhD from Liverpool Hope University, blaming the claim on a LinkedIn page set up by parties unknown. Andrew Marr also confronted Nuttall with past comments of him calling for the privatization of the NHS in 2011.

ON THE CASEY

Louise Casey, the government's integration tsar, has a new report out in which she says that ethnic segregation in the UK is increasing, and criticizes the government for not doing enough to tackle the problem. The big items: the condition of women in ethnic minority communities, a lack of English language lessons, and recommended an oath of allegiance for all public servants. It's the latter that has the Mail all excited: "Swear oath to live in Britain" is their splash. Anushka Asthana has the full details in the Guardian.

SPECIALIST IN FAILURE (TO PAY TAXES?)

Commons PAC chair Meg Hillier has called for football coach Jose Mourinho to be investigated over reports that he has moved millions offshore to avoid paying tax. (If 1-1 draws are tax deductible, that would explain a great deal.) 

SOUNDS UNNERVINGLY LIKE HOME

Theresa May has told the Radio Times what her Christmas is like: Midnight Mass, sleep, a church service, then lunch (goose) and Doctor Who. She has opened up on the difficulties of growing up in a vicarage (among other things, not getting to open your presents for aaages). 

AND NOW FOR SOMETHING COMPLETELY DIFFERENT

It's beginning to feel a bit like Christmas! And to help you on your way, here's Anna's top 10 recommendations for Christmassy soundtracks.

MUST READS

Chimamanda Ngozi Adichie on how to respond to Trump

Labour has a horrible dilemma on Brexit, I say

Michael Chessum on why aping Ukip on Brexit is the path to Labour defeat

Jason on how politics makes us human

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Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.